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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Where a transaction is credited to the correct ledger account but debited to the purchases account instead of the fixed asset account, the error is known as an error of:

A) Omission
B) Principle
C) Original entry
D) Commission

2. Store Y believe customer XF will not be able to pay his £300 debt. Which ONE of the following day books should this 'bad debt' be recorded in?

A) Returns inwards daybook
B) Sales daybook
C) journal
D) Petty cash book
E) Cash book

3. In the year ended 31 December 20X1, XYZ receives an email confirming that a major customer has gone into liquidation and will be unable to pay its suppliers.
Which of the following is the impact of adjusting for this event?

A) Receivables decrease and profits decrease
B) Receivables unchanged and profits decrease
C) Receivables decrease and allowance increases
D) Profits increase and allowance increases.

4. Company X wants to find the total of all the transactions from its sales account. Where should Company Xlook?

A) Memorandum account
B) Sales ledger
C) Sales control account

5. A contra entry is best described as:

A) An entry made to balance the control account
B) An entry made to set off the balances of the same account within the sales ledger and the purchase ledger
C) An entry made between two customers in the sales ledger
D) An entry made between two customers in the purchase ledger

Solutions: